1 00:00:02,279 --> 00:00:04,720 Speaker 1: This is Bloomberg day Break Weekend, our global look at 2 00:00:04,720 --> 00:00:07,160 Speaker 1: the top stories in the coming week from our Daybreak 3 00:00:07,160 --> 00:00:10,119 Speaker 1: anchors all around the world, and straight ahead on the program, 4 00:00:10,560 --> 00:00:13,520 Speaker 1: Investors await another batch of earnings, and we'll tell you 5 00:00:13,560 --> 00:00:17,040 Speaker 1: what to expect from Disney. I'm Tom Busby in New York. 6 00:00:17,160 --> 00:00:19,960 Speaker 2: I'm Kaylie Lines in Washington, where we're looking forward to 7 00:00:20,000 --> 00:00:22,960 Speaker 2: the third Republican presidential primary debate. 8 00:00:23,160 --> 00:00:25,600 Speaker 3: I'm kallen Hecker here in London, where we're looking ahead 9 00:00:25,640 --> 00:00:28,280 Speaker 3: to earnings from the Swiss banky Giant Ubs. 10 00:00:28,440 --> 00:00:31,160 Speaker 4: I'm Brian Curtis in Hong Kong. We look at possible 11 00:00:31,240 --> 00:00:35,479 Speaker 4: deliverables on the Australian Prime Minister Anthony Albanisi's trip to China. 12 00:00:35,520 --> 00:00:39,239 Speaker 5: That's all straight ahead on Bloomberg Daybreak Weekend, the business 13 00:00:39,280 --> 00:00:41,600 Speaker 5: news you need to wrap up your week in just 14 00:00:41,760 --> 00:00:46,320 Speaker 5: one fifteen minute podcast, available on Apple, Spotify, The Bloomberg 15 00:00:46,360 --> 00:00:49,040 Speaker 5: Business Appen everywhere you get your podcasts. 16 00:00:51,920 --> 00:00:54,440 Speaker 1: Good day to you. I'm Tom Busby. We begin today's 17 00:00:54,440 --> 00:00:57,560 Speaker 1: program with earnings. They continue with more than fifty companies 18 00:00:57,600 --> 00:00:59,720 Speaker 1: in the S and P five hundred reporting this week 19 00:01:00,080 --> 00:01:03,560 Speaker 1: and heading that list Disney, and for a preview, we 20 00:01:03,560 --> 00:01:07,840 Speaker 1: welcome Bloomberg Intelligence US media analyst Getha Raganathan. Well, now, 21 00:01:07,840 --> 00:01:10,920 Speaker 1: before we dive into Disney's upcoming earnings, let's talk about 22 00:01:10,959 --> 00:01:14,200 Speaker 1: some big moves that the world's biggest media company just 23 00:01:14,480 --> 00:01:19,360 Speaker 1: made this past week, announcing ESPN Bet, its official sports 24 00:01:19,360 --> 00:01:23,160 Speaker 1: betting platform. That's a partnership with Penn Entertainment. It'll begin 25 00:01:23,200 --> 00:01:26,840 Speaker 1: taking bets in seventeenth States November fourteenth. What does this 26 00:01:27,080 --> 00:01:28,319 Speaker 1: mean for Disney? 27 00:01:28,560 --> 00:01:33,960 Speaker 6: Yeah, it's It was a really important move by ESPN, Tom. 28 00:01:33,959 --> 00:01:35,640 Speaker 6: I mean, they had kind of been putting this off 29 00:01:35,640 --> 00:01:39,320 Speaker 6: for years. They'd been exploring deals with different sports betting partners, 30 00:01:39,360 --> 00:01:43,440 Speaker 6: including you know, DraftKings. They finally did this deal with 31 00:01:43,480 --> 00:01:46,319 Speaker 6: Pen Entertainment in August, and of course now Penn is 32 00:01:46,440 --> 00:01:50,760 Speaker 6: rebranding its Barstool sportsbook as ESPN Bet. I think what 33 00:01:50,800 --> 00:01:54,000 Speaker 6: it really tells us is the power of the ESPN brand. 34 00:01:54,360 --> 00:01:58,040 Speaker 6: I mean this move comes just as Disney actually disclosed 35 00:01:58,600 --> 00:02:02,200 Speaker 6: standalone financials for ESPN for the very first time in 36 00:02:02,240 --> 00:02:05,800 Speaker 6: its history. And what we get to know about ESPN is, 37 00:02:06,080 --> 00:02:08,720 Speaker 6: you know, it is of course, you know, the top 38 00:02:08,760 --> 00:02:11,359 Speaker 6: line is under pressure, but it is still a very, 39 00:02:11,480 --> 00:02:14,880 Speaker 6: very profitable business. This is This is a business that 40 00:02:15,000 --> 00:02:19,440 Speaker 6: is generating roughly about sixteen seventeen billion dollars in revenue, 41 00:02:19,720 --> 00:02:22,680 Speaker 6: but more importantly around three billion dollars than EBITDA, So 42 00:02:22,720 --> 00:02:25,799 Speaker 6: it is definitely a cash cow. It is the biggest, 43 00:02:26,120 --> 00:02:29,720 Speaker 6: one of the biggest linear TV properties for ESPN, and 44 00:02:29,760 --> 00:02:32,800 Speaker 6: I think, you know, with when ESPN bet kind of 45 00:02:32,840 --> 00:02:35,800 Speaker 6: goes out, you'll again get to see, you know, the 46 00:02:35,840 --> 00:02:37,920 Speaker 6: power of that ESPN brand and it's going to be 47 00:02:37,919 --> 00:02:40,560 Speaker 6: interesting to see how it kind of plays out for Disney. Remember, 48 00:02:40,560 --> 00:02:44,280 Speaker 6: Disney is getting about two billion dollars over ten years 49 00:02:44,320 --> 00:02:48,400 Speaker 6: for the use of that ESPN name. So again, I 50 00:02:48,440 --> 00:02:51,480 Speaker 6: think it really plays into, you know, kind of what 51 00:02:51,639 --> 00:02:54,680 Speaker 6: the strategic direction could be for ESPN in the future. 52 00:02:54,960 --> 00:02:58,080 Speaker 1: Yeah, and another direction Disney's taking is a bigger bet 53 00:02:58,120 --> 00:03:02,200 Speaker 1: into streaming by obtaining the one third stake in Hulu 54 00:03:02,360 --> 00:03:05,160 Speaker 1: that it didn't already own. And what's what's the strategy there? 55 00:03:05,320 --> 00:03:08,320 Speaker 6: Yea, I think it's really important for Disney to kind 56 00:03:08,320 --> 00:03:11,120 Speaker 6: of consolidate its streaming properties. Obviously it has a huge 57 00:03:11,160 --> 00:03:14,760 Speaker 6: powerhouse in Disney Plus, but with Hulu it's kind of 58 00:03:14,840 --> 00:03:16,800 Speaker 6: been a little bit of a head scratcher because of 59 00:03:16,840 --> 00:03:19,320 Speaker 6: the sixty six percent ownership that Disney owns, but the 60 00:03:19,360 --> 00:03:21,240 Speaker 6: thirty three percent that it doesn't own, which you know, 61 00:03:21,240 --> 00:03:23,960 Speaker 6: which is still kind of owned by Comcast. And so 62 00:03:24,080 --> 00:03:27,480 Speaker 6: I think it's essential for Disney to kind of go 63 00:03:27,520 --> 00:03:31,160 Speaker 6: ahead and acquire that remaining thirty three percent because then 64 00:03:31,200 --> 00:03:33,720 Speaker 6: they kind of get to have, you know, a singular 65 00:03:33,760 --> 00:03:36,360 Speaker 6: streaming strategy with all of their different products, whether it's 66 00:03:36,400 --> 00:03:39,400 Speaker 6: Disney Plus, whether it's ESPN Plus, and then Hulu. And 67 00:03:39,440 --> 00:03:42,320 Speaker 6: then of course the more important thing is you not 68 00:03:42,360 --> 00:03:46,160 Speaker 6: only get to sell you know, an integrated product, an 69 00:03:46,200 --> 00:03:50,120 Speaker 6: integrated bundle, but also you get to realize some really 70 00:03:50,280 --> 00:03:53,560 Speaker 6: huge cost and revenue savings. I mean, we're estimating about 71 00:03:53,560 --> 00:03:55,480 Speaker 6: anywhere from about one to one and a half billion 72 00:03:55,520 --> 00:03:58,640 Speaker 6: dollars in cost savings once they're able to kind of 73 00:03:58,680 --> 00:04:01,800 Speaker 6: bring Hulu under complete control and. 74 00:04:02,240 --> 00:04:04,920 Speaker 1: Fifty million subscribers is nothing to sneeze that either. 75 00:04:05,040 --> 00:04:09,400 Speaker 6: Absolutely. Plus, remember Hulu has a very very robust advertising business. 76 00:04:09,400 --> 00:04:11,240 Speaker 6: I mean, this is a business that all regenerates about 77 00:04:11,240 --> 00:04:13,400 Speaker 6: three and a half billion dollars in advertising. It is 78 00:04:13,480 --> 00:04:17,240 Speaker 6: the most successful streaming ad product out there. Just as 79 00:04:17,279 --> 00:04:19,640 Speaker 6: everybody else is kind of trying to get into that 80 00:04:19,720 --> 00:04:22,320 Speaker 6: ad based tear, whether it's Netflix, whether it's Amazon Prime, 81 00:04:22,480 --> 00:04:24,160 Speaker 6: and even Disney Plus. I mean, none of them have 82 00:04:24,320 --> 00:04:26,720 Speaker 6: had the success that Hulu has had, so it's kind 83 00:04:26,760 --> 00:04:29,640 Speaker 6: of really critical for Disney to build on that success 84 00:04:29,720 --> 00:04:32,240 Speaker 6: that Hulu already has in the marketplace. 85 00:04:32,520 --> 00:04:35,279 Speaker 1: Well, let's turn to earnings then. For last quarter, we expect, 86 00:04:35,600 --> 00:04:39,440 Speaker 1: as always, Theme Parks Cruise division having another blockbuster quarter, 87 00:04:40,000 --> 00:04:42,280 Speaker 1: but there's a lot more to the company. And what 88 00:04:42,520 --> 00:04:44,640 Speaker 1: are you expecting to see this coming. 89 00:04:44,440 --> 00:04:48,000 Speaker 6: Weekam, It's really interesting. So it's not really the results 90 00:04:48,040 --> 00:04:50,719 Speaker 6: so much, but it's just this whole barrage of other 91 00:04:50,920 --> 00:04:54,960 Speaker 6: issues that is kind of weighing on the Disney stock 92 00:04:55,080 --> 00:04:57,680 Speaker 6: right now. I mean, whether it is the ESPN strategic 93 00:04:57,680 --> 00:05:01,080 Speaker 6: direction as you just spoke about, or Hulu. They're even 94 00:05:01,160 --> 00:05:03,840 Speaker 6: looking at getting rid of some of their linear TV assets, 95 00:05:04,160 --> 00:05:06,320 Speaker 6: you know, they were looking at the ABC network, the 96 00:05:06,360 --> 00:05:09,640 Speaker 6: ABC stations for instance. They're looking to get out of 97 00:05:09,680 --> 00:05:12,400 Speaker 6: their India business. So there's just so many different things. 98 00:05:13,040 --> 00:05:15,240 Speaker 6: There's so much of different work that needs to be done. 99 00:05:15,279 --> 00:05:18,000 Speaker 6: But I would say arguably the most important thing for 100 00:05:18,120 --> 00:05:20,040 Speaker 6: them to do right now is to kind of really 101 00:05:20,120 --> 00:05:24,040 Speaker 6: rev up their content engine. Right We've seen them kind 102 00:05:24,040 --> 00:05:26,039 Speaker 6: of put out a whole bunch of movies, whether it 103 00:05:26,160 --> 00:05:29,480 Speaker 6: was you know, Indiana Jones or Elemental that didn't really 104 00:05:29,640 --> 00:05:33,280 Speaker 6: perform or live up to expectations at the global box office. 105 00:05:33,600 --> 00:05:36,440 Speaker 6: And so they're really kind of rethinking their content strategy 106 00:05:36,520 --> 00:05:39,640 Speaker 6: right now, looking at how to kind of reinvigorate a 107 00:05:39,680 --> 00:05:42,359 Speaker 6: lot of you know, the existing franchises, a lot of 108 00:05:42,360 --> 00:05:45,920 Speaker 6: the sequels, so you know, there's a lot going on. 109 00:05:46,760 --> 00:05:49,640 Speaker 6: And of course I think, you know, obviously bar Bieger 110 00:05:49,720 --> 00:05:52,080 Speaker 6: has made considerable progress on a lot of the different things, 111 00:05:52,080 --> 00:05:54,880 Speaker 6: whether it's restructuring, whether it's bringing down costs. They're doing 112 00:05:54,960 --> 00:05:58,279 Speaker 6: everything that they can whatever seems fixable. But again a 113 00:05:58,320 --> 00:05:59,960 Speaker 6: lot of questions still remain. 114 00:06:00,720 --> 00:06:03,880 Speaker 1: And they've had talks about shedding some of those media 115 00:06:03,920 --> 00:06:07,680 Speaker 1: assets as not ESPN, but as you mentioned, the Disney Channel, 116 00:06:07,760 --> 00:06:11,280 Speaker 1: National Geographic, A and E Lifetime, a whole bunch of 117 00:06:11,360 --> 00:06:15,960 Speaker 1: linear assets. But have we seen any progress on that. 118 00:06:16,040 --> 00:06:18,599 Speaker 1: I know we've seen Byron Allen saying he made a bid, 119 00:06:18,920 --> 00:06:22,080 Speaker 1: some others in talks, but is there any movement not. 120 00:06:22,279 --> 00:06:25,880 Speaker 6: Since you know, those pieces of news came out, there 121 00:06:25,880 --> 00:06:29,279 Speaker 6: hasn't been any significant movement. The only thing that we've 122 00:06:29,279 --> 00:06:31,000 Speaker 6: heard in the meantime is that they're really kind of 123 00:06:31,040 --> 00:06:34,760 Speaker 6: looking hard at, you know, getting somebody to buy out 124 00:06:34,800 --> 00:06:37,880 Speaker 6: their India business, which which could be worth upwards of 125 00:06:37,920 --> 00:06:40,200 Speaker 6: ten billion dollars. So that would be a huge cash 126 00:06:40,279 --> 00:06:43,120 Speaker 6: in flux in for Disney. But we really haven't seen 127 00:06:43,160 --> 00:06:45,760 Speaker 6: any movement on the rest of the linear TV portfolio. 128 00:06:45,920 --> 00:06:49,240 Speaker 1: Well, let's talk about Disney also playing hardball this past 129 00:06:49,320 --> 00:06:53,320 Speaker 1: quarter with Charter Communications Spectrum cable platform on a carriage deal, 130 00:06:53,960 --> 00:06:57,720 Speaker 1: and Spectrum says they lost one hundred thousand subscribers. That's 131 00:06:57,760 --> 00:07:00,560 Speaker 1: after a ten day blackout of all Disney channel just 132 00:07:00,600 --> 00:07:03,520 Speaker 1: as including ESPN, just as college football was starting up. 133 00:07:03,560 --> 00:07:07,680 Speaker 1: But could this change or maybe accelerate the implementation of 134 00:07:07,680 --> 00:07:10,040 Speaker 1: an alla carte menu from cable providers. 135 00:07:10,280 --> 00:07:14,320 Speaker 6: I definitely think that deal had huge ramifications across the 136 00:07:14,400 --> 00:07:18,520 Speaker 6: PATV landscape. You know, one thing that we definitely got 137 00:07:18,560 --> 00:07:21,080 Speaker 6: to know is I think when we have these carriage 138 00:07:21,120 --> 00:07:23,360 Speaker 6: deals come up in the future between the content owners 139 00:07:23,400 --> 00:07:25,760 Speaker 6: and the PATV distributors, it is going to be a 140 00:07:25,800 --> 00:07:28,080 Speaker 6: hybrid distribution model. I mean, it is going to be 141 00:07:28,120 --> 00:07:31,560 Speaker 6: a combination of both linear TV and streaming. And you 142 00:07:31,600 --> 00:07:34,200 Speaker 6: bring up a very very good point in terms of, 143 00:07:34,240 --> 00:07:38,200 Speaker 6: you know, does that kind of expedite this whole transition 144 00:07:38,360 --> 00:07:41,120 Speaker 6: into ESPN going a la carte And I think to 145 00:07:41,160 --> 00:07:43,400 Speaker 6: a certain extent it does. I mean, they've already kind 146 00:07:43,400 --> 00:07:47,840 Speaker 6: of secured carriage with Charter for when that actually does happen. Now, 147 00:07:47,880 --> 00:07:50,200 Speaker 6: of course, we don't know the date just yet. One 148 00:07:50,240 --> 00:07:52,560 Speaker 6: of the things that is spending is the renewal of 149 00:07:52,600 --> 00:07:56,120 Speaker 6: the NBA deal because they do need to secure digital rights, 150 00:07:56,880 --> 00:07:59,080 Speaker 6: you know, for the NBA game. So that will happen 151 00:07:59,120 --> 00:08:01,760 Speaker 6: only sometime in twenty two, twenty twenty five, but it 152 00:08:01,840 --> 00:08:03,800 Speaker 6: is definitely going to happen, and Disney has said this 153 00:08:03,920 --> 00:08:07,800 Speaker 6: multiple times and yes, so you know they are trying 154 00:08:07,840 --> 00:08:10,480 Speaker 6: to I mean, the PATV bundle is obviously not going 155 00:08:10,480 --> 00:08:14,320 Speaker 6: to go away completely, but it is definitely losing its its, 156 00:08:14,400 --> 00:08:18,120 Speaker 6: you know, relevance in some ways, at least the linear 157 00:08:18,160 --> 00:08:21,080 Speaker 6: TV portion of it, as more and more consumers move 158 00:08:21,120 --> 00:08:21,600 Speaker 6: to streaming. 159 00:08:21,680 --> 00:08:21,880 Speaker 5: Wow. 160 00:08:21,920 --> 00:08:24,239 Speaker 1: Well, let's shift it back then to what you're looking 161 00:08:24,520 --> 00:08:27,560 Speaker 1: forward to this week in Disney earning. So all these 162 00:08:27,600 --> 00:08:31,560 Speaker 1: moving parts, all these different divisions they have, what does 163 00:08:31,600 --> 00:08:34,320 Speaker 1: it mean for investors? What are we expecting to see? 164 00:08:34,480 --> 00:08:36,920 Speaker 6: I think the biggest thing that we're really looking for, 165 00:08:37,360 --> 00:08:39,360 Speaker 6: and I think this could be a huge catalyst for 166 00:08:39,360 --> 00:08:43,480 Speaker 6: the stock if there's any language surrounding streaming profitability and 167 00:08:43,640 --> 00:08:46,520 Speaker 6: how quickly Disney can kind of cut costs. Remember, they 168 00:08:46,559 --> 00:08:51,079 Speaker 6: have made a lot of progress on you know, reducing 169 00:08:51,120 --> 00:08:54,520 Speaker 6: streaming losses, but they still did lose about four billion 170 00:08:54,600 --> 00:08:57,760 Speaker 6: dollars last year on Disney Plus, and they are still 171 00:08:57,760 --> 00:09:00,880 Speaker 6: set to lose about two point seven billion dollars again 172 00:09:00,920 --> 00:09:03,400 Speaker 6: this year. Yes, they're making progress, but if they can 173 00:09:03,440 --> 00:09:05,280 Speaker 6: get there faster, if they can get to a break 174 00:09:05,320 --> 00:09:07,800 Speaker 6: even faster, if they can get to positive profits faster, 175 00:09:08,280 --> 00:09:11,600 Speaker 6: that would bring investors a lot of cheer. We also 176 00:09:11,600 --> 00:09:13,920 Speaker 6: know that they did raise their streaming prices for the 177 00:09:13,960 --> 00:09:17,000 Speaker 6: second time this year. They upped the monthly price of 178 00:09:17,080 --> 00:09:20,400 Speaker 6: the ad free Disney Plus by about twenty twenty five percent. 179 00:09:20,480 --> 00:09:22,360 Speaker 6: So again it would be interesting to see if there's 180 00:09:22,400 --> 00:09:25,720 Speaker 6: been some increasing cancelations because of that, you know, how 181 00:09:25,760 --> 00:09:29,040 Speaker 6: that has been trending, and if that really had made 182 00:09:30,000 --> 00:09:33,199 Speaker 6: you know, some significant dent in terms of their you know, 183 00:09:33,640 --> 00:09:34,760 Speaker 6: revenue numbers as well. 184 00:09:35,040 --> 00:09:37,360 Speaker 1: Now, one more thing I want to talk about, and 185 00:09:37,400 --> 00:09:42,480 Speaker 1: that is Bob Iger, the former and president CEO. Any 186 00:09:42,600 --> 00:09:45,800 Speaker 1: idea on how long he's going to stay there succession plans? 187 00:09:45,880 --> 00:09:49,320 Speaker 1: Are we going to see another big drama unfold if 188 00:09:49,679 --> 00:09:50,960 Speaker 1: it doesn't work out the first time? 189 00:09:52,679 --> 00:09:54,760 Speaker 6: Yeah, this has just been such a constant pain point 190 00:09:54,760 --> 00:09:56,920 Speaker 6: for Disney. So we know that Bob Iger has another 191 00:09:56,960 --> 00:10:00,600 Speaker 6: two years. He definitely needs those extra two years. We 192 00:10:00,640 --> 00:10:03,000 Speaker 6: know Disney definitely needs the two years to kind of 193 00:10:03,040 --> 00:10:08,800 Speaker 6: get there this whole turnaround in motion. The immediate thing 194 00:10:08,840 --> 00:10:10,840 Speaker 6: that they do need as a permanent CFO because we 195 00:10:10,880 --> 00:10:14,559 Speaker 6: know the current CFO is just temporary, So they definitely 196 00:10:14,600 --> 00:10:18,840 Speaker 6: need that. You know, about the succession drama, I mean, Tom, 197 00:10:18,840 --> 00:10:21,319 Speaker 6: it's any anybody's guess is as good as mine. I mean, 198 00:10:22,640 --> 00:10:24,400 Speaker 6: you know, they do have a little bit of time, 199 00:10:24,960 --> 00:10:27,480 Speaker 6: you know, but we'll have to really see how it 200 00:10:27,559 --> 00:10:29,120 Speaker 6: kind of plays out. I know it is top of 201 00:10:29,160 --> 00:10:31,080 Speaker 6: mind for Bob Bieger, and I'm sure he has a 202 00:10:31,080 --> 00:10:32,920 Speaker 6: lot of candidates that he's lined up. 203 00:10:33,160 --> 00:10:35,960 Speaker 1: Oh yeah, he's retired before, so I'm sure he's already 204 00:10:35,960 --> 00:10:39,319 Speaker 1: thinking about it again. Well, our thanks to Bloomberg Intelligence 205 00:10:39,400 --> 00:10:43,200 Speaker 1: US media analyst Githa Raganathin and coming up bom Bloomberg 206 00:10:43,240 --> 00:10:47,240 Speaker 1: day Break Weekend Republicans get set for their third presidential debate, 207 00:10:47,520 --> 00:10:51,560 Speaker 1: Will Donald Trump participate? I'm Tom Busby and this is Bloomberg. 208 00:11:01,840 --> 00:11:04,560 Speaker 1: This is Bloomberg Daybreak weekend, our global look ahead at 209 00:11:04,559 --> 00:11:07,080 Speaker 1: the top stories for investors in the coming week. I'm 210 00:11:07,120 --> 00:11:09,680 Speaker 1: Tom Busby in New York. Up later in our program 211 00:11:09,800 --> 00:11:12,600 Speaker 1: we take you to Europe and preview earnings from ubs. 212 00:11:12,640 --> 00:11:16,840 Speaker 1: But first, the third Republican presidential debate taking place this 213 00:11:16,960 --> 00:11:19,880 Speaker 1: Wednesday in Miami. For more, let's add to our Bloomberg 214 00:11:19,960 --> 00:11:23,320 Speaker 1: ninety nine to one newsroom in Washington and Bloomberg Sound On. 215 00:11:23,520 --> 00:11:25,160 Speaker 1: Co host Kaylee Lines. 216 00:11:25,480 --> 00:11:28,520 Speaker 2: That's right, Tom, We're gearing up for round three, the 217 00:11:28,559 --> 00:11:32,520 Speaker 2: third primary debate between the Republican presidential hopefuls. It takes 218 00:11:32,559 --> 00:11:35,959 Speaker 2: place in Miami this coming Wednesday, and despite it being 219 00:11:36,080 --> 00:11:39,360 Speaker 2: in his adoptive home state, No, the former president and 220 00:11:39,400 --> 00:11:42,439 Speaker 2: front runner Donald Trump will not be in attendance again, 221 00:11:43,080 --> 00:11:45,080 Speaker 2: and a few others who had been on the stage 222 00:11:45,080 --> 00:11:47,640 Speaker 2: in the prior debates will not be on this one, 223 00:11:47,880 --> 00:11:51,199 Speaker 2: partially because the threshold to qualify was raised. A candidate 224 00:11:51,240 --> 00:11:53,360 Speaker 2: needs to have multiple polls that show them at four 225 00:11:53,400 --> 00:11:55,880 Speaker 2: percent or higher and need to have at least seventy 226 00:11:56,000 --> 00:11:59,680 Speaker 2: thousand unique donors, so that might be a bummer for some. Plus, 227 00:12:00,080 --> 00:12:04,000 Speaker 2: former Vice President Pence won't be there because well, he 228 00:12:04,080 --> 00:12:06,439 Speaker 2: dropped out of the race entirely last weekend. 229 00:12:06,800 --> 00:12:09,960 Speaker 7: The Bible tells us that there's a time for every 230 00:12:10,000 --> 00:12:13,400 Speaker 7: purpose under heaven. Traveling across the country over the past 231 00:12:13,440 --> 00:12:16,120 Speaker 7: six months, I came here to say, it's become clear 232 00:12:16,120 --> 00:12:18,040 Speaker 7: to me this is not my time. 233 00:12:18,280 --> 00:12:20,880 Speaker 2: So with that, it's going to be a much smaller 234 00:12:20,920 --> 00:12:23,680 Speaker 2: group on the third stage here with a preview before 235 00:12:23,720 --> 00:12:26,080 Speaker 2: she makes the trip to Florida, herself as Nancy Cook, 236 00:12:26,080 --> 00:12:28,959 Speaker 2: who covers national politics for US here at Bloomberg and 237 00:12:29,040 --> 00:12:33,040 Speaker 2: All Things twenty twenty four. So Nancy first question of 238 00:12:33,080 --> 00:12:35,040 Speaker 2: the five were expecting to be on the stage, that 239 00:12:35,080 --> 00:12:39,520 Speaker 2: would be DeSantis, Haley, Ramaswami, Christi and Senator Tim Scott. 240 00:12:39,720 --> 00:12:41,920 Speaker 2: Who has the most to gain and who has the 241 00:12:41,960 --> 00:12:42,559 Speaker 2: most to lose? 242 00:12:42,720 --> 00:12:45,840 Speaker 8: Well, I would say Nikki Haley probably has the most 243 00:12:45,880 --> 00:12:49,920 Speaker 8: to gain. She has had two really good prior debates. 244 00:12:50,200 --> 00:12:53,120 Speaker 8: We've seen her poll numbers rising. A lot of donors 245 00:12:53,160 --> 00:12:57,360 Speaker 8: who have become disenchanted with a DeSantis's campaign have been 246 00:12:57,440 --> 00:12:59,960 Speaker 8: flocking towards her, and I do think that she has 247 00:13:00,080 --> 00:13:04,120 Speaker 8: as a real chance to emerge as the alternative to 248 00:13:04,320 --> 00:13:07,520 Speaker 8: Donald Trump. She's also been spending a ton of time 249 00:13:07,520 --> 00:13:10,200 Speaker 8: in New Hampshire over the past six months, and we've 250 00:13:10,200 --> 00:13:12,560 Speaker 8: seen her poll numbers go up in Iowa, and so 251 00:13:12,679 --> 00:13:15,160 Speaker 8: she is definitely on the rise. And if she can 252 00:13:15,200 --> 00:13:17,040 Speaker 8: have a good debate, and she has shown that she 253 00:13:17,160 --> 00:13:20,640 Speaker 8: is a good debater, she really could capitalize on that momentum, 254 00:13:20,720 --> 00:13:24,360 Speaker 8: impress more donors, and sort of continue to reintroduce herself 255 00:13:24,360 --> 00:13:25,280 Speaker 8: to the American public. 256 00:13:25,960 --> 00:13:29,200 Speaker 2: So is Nikki Hayley's gain than kind of on the 257 00:13:29,240 --> 00:13:32,320 Speaker 2: other side of the coin, Ron DeSantis's loss, because you 258 00:13:32,360 --> 00:13:34,520 Speaker 2: mentioned how she's been gaining in say polls in Iowa 259 00:13:34,640 --> 00:13:37,200 Speaker 2: won this past week showed them tied exactly. 260 00:13:37,240 --> 00:13:40,079 Speaker 8: And the other interesting data points from that Iowa poll 261 00:13:40,240 --> 00:13:42,720 Speaker 8: was that she know she's doing really well with suburban 262 00:13:42,840 --> 00:13:47,080 Speaker 8: voters and she's also appealing to independence. So one hundred 263 00:13:47,120 --> 00:13:50,880 Speaker 8: percent her gain is DeSantis's loss. And speaking of him, 264 00:13:50,920 --> 00:13:52,520 Speaker 8: I do think that he is the one that has 265 00:13:52,559 --> 00:13:55,559 Speaker 8: the most to lose. He has not managed to land 266 00:13:55,640 --> 00:13:58,560 Speaker 8: a breakout performance or even really a breakout moment in 267 00:13:58,600 --> 00:14:02,160 Speaker 8: the last two debates, although he has tried, and I 268 00:14:02,280 --> 00:14:05,520 Speaker 8: just think his debates have been performances have been sort 269 00:14:05,520 --> 00:14:08,560 Speaker 8: of meh. And I think that if he has sort 270 00:14:08,559 --> 00:14:11,800 Speaker 8: of registered a third one and Haley sort of is 271 00:14:11,840 --> 00:14:14,760 Speaker 8: taking off again, donors are just going to keep going 272 00:14:14,800 --> 00:14:17,760 Speaker 8: towards her. And I think the challenge for him is, 273 00:14:18,559 --> 00:14:20,920 Speaker 8: you know, the donor space. The donors are sort of 274 00:14:21,280 --> 00:14:23,840 Speaker 8: souring on him. They already have soured on him a bit. 275 00:14:23,920 --> 00:14:26,120 Speaker 8: And at some point you have to have enough money 276 00:14:26,160 --> 00:14:27,560 Speaker 8: to stay in the race for a while. 277 00:14:27,720 --> 00:14:29,440 Speaker 2: And we know he's had a bit of a money 278 00:14:29,480 --> 00:14:32,480 Speaker 2: management problem over the course of his campaign as well. 279 00:14:32,400 --> 00:14:34,560 Speaker 8: Right, Like, he has taken a lot of money in 280 00:14:34,800 --> 00:14:37,320 Speaker 8: and his super pack has money. But part of the 281 00:14:37,360 --> 00:14:39,960 Speaker 8: problem is is that they spend a lot of money. 282 00:14:40,000 --> 00:14:43,160 Speaker 8: You know, he flies private everywhere. You know, he has 283 00:14:43,200 --> 00:14:46,120 Speaker 8: to charter planes to go wherever he goes. And so 284 00:14:46,240 --> 00:14:48,600 Speaker 8: that really which is his own choice. I should say 285 00:14:49,720 --> 00:14:52,680 Speaker 8: it's a choice, but it's definitely they they you know, 286 00:14:52,960 --> 00:14:55,200 Speaker 8: go through money more so than other folks, and so 287 00:14:55,360 --> 00:14:57,640 Speaker 8: you're really trying to see, well, can he lasts not 288 00:14:57,720 --> 00:15:00,520 Speaker 8: just through Iowa, but like could he last through Super 289 00:15:00,560 --> 00:15:03,880 Speaker 8: Tuesday in March? And so that that's really what I'll 290 00:15:03,880 --> 00:15:04,560 Speaker 8: be looking. 291 00:15:04,320 --> 00:15:07,600 Speaker 2: For So we talk about lasting through Iowa. And it's 292 00:15:07,600 --> 00:15:11,240 Speaker 2: interesting that South Carolina Senator Tim Scott qualified for this 293 00:15:11,280 --> 00:15:14,080 Speaker 2: debate this past week after he really has shifted his 294 00:15:14,160 --> 00:15:18,080 Speaker 2: campaign strategy to essentially focus only on Iowa. I believe 295 00:15:18,120 --> 00:15:21,520 Speaker 2: he's been recently quoted as saying it's Iowa or bust. 296 00:15:21,880 --> 00:15:25,040 Speaker 2: Is there really any oxygen for him in this race, 297 00:15:25,160 --> 00:15:27,240 Speaker 2: on this debate stage when so much of the focus 298 00:15:27,320 --> 00:15:29,000 Speaker 2: is on Nikki Haley and Rond DeSantis. 299 00:15:29,400 --> 00:15:32,800 Speaker 8: Not really, he hasn't a Senator, Scott has not distinguished 300 00:15:32,880 --> 00:15:35,760 Speaker 8: himself on the debate stage at all so far. I 301 00:15:35,800 --> 00:15:38,880 Speaker 8: do think that he could, you know, pick up some 302 00:15:39,160 --> 00:15:43,160 Speaker 8: Penns voters in Iowa. You know, Tim Scott really has 303 00:15:43,200 --> 00:15:46,160 Speaker 8: made a play for evangelical voters. He really plays up 304 00:15:46,160 --> 00:15:48,880 Speaker 8: his faith on the campaign trail. So Penns dropping out, 305 00:15:49,200 --> 00:15:53,120 Speaker 8: particularly in Iowa where there are so many evangelical voters, 306 00:15:53,160 --> 00:15:56,120 Speaker 8: could help Scott, But I don't think enough so at 307 00:15:56,160 --> 00:15:58,800 Speaker 8: this point to earn the nomination. 308 00:15:59,280 --> 00:16:01,440 Speaker 2: Well, you say that Scott hasn't really been able to 309 00:16:01,480 --> 00:16:04,360 Speaker 2: distinguish himself in one of these candidates who was able 310 00:16:04,360 --> 00:16:06,520 Speaker 2: to at least suck up a lot of oxygen in 311 00:16:06,560 --> 00:16:09,760 Speaker 2: the prior debates we've seen as viviak Ramaswami. Where is 312 00:16:09,800 --> 00:16:11,720 Speaker 2: his campaign right now? I feel like we heard so 313 00:16:11,840 --> 00:16:14,120 Speaker 2: much about him after the first debate because he really 314 00:16:14,120 --> 00:16:16,400 Speaker 2: did kind of make a mark. He took a lot 315 00:16:16,440 --> 00:16:18,920 Speaker 2: of attacks from the other candidates as well, and then 316 00:16:18,920 --> 00:16:20,000 Speaker 2: I feel like it kind of faded. 317 00:16:20,680 --> 00:16:23,320 Speaker 8: Yeah, he's been out and about lately. He was up 318 00:16:23,360 --> 00:16:26,600 Speaker 8: in New Hampshire. You know, for some appearances, he has 319 00:16:26,680 --> 00:16:28,400 Speaker 8: spent a lot of time in New Hampshire. So he's 320 00:16:28,400 --> 00:16:31,640 Speaker 8: still definitely out there campaigning. I will it will be 321 00:16:31,640 --> 00:16:34,080 Speaker 8: interesting to see what he does in the debate, because 322 00:16:34,600 --> 00:16:36,600 Speaker 8: you know, he did suck up so much oxygen in 323 00:16:36,640 --> 00:16:40,200 Speaker 8: the first debate and people were sort of impressed by that. 324 00:16:40,320 --> 00:16:43,680 Speaker 8: But then also he annoyed people because people felt like 325 00:16:43,720 --> 00:16:46,600 Speaker 8: he was sort of the kid brother, you know, harassing 326 00:16:46,640 --> 00:16:49,280 Speaker 8: people and taking attention by the end of it, and 327 00:16:49,400 --> 00:16:51,040 Speaker 8: so I felt like it was sort of a double 328 00:16:51,160 --> 00:16:54,720 Speaker 8: edged sword there. You know, he is a very skilled debater. 329 00:16:54,840 --> 00:16:58,520 Speaker 8: He was a college debater. You know, he is articulate. 330 00:16:59,040 --> 00:17:01,760 Speaker 8: The interesting thing about him is that he loves Trump, 331 00:17:01,800 --> 00:17:04,399 Speaker 8: and so he sort of refuses to break from Trump, 332 00:17:04,640 --> 00:17:07,359 Speaker 8: whereas the other candidates on the stage are really trying 333 00:17:07,359 --> 00:17:10,919 Speaker 8: to distinguish themselves from the former president, and that's a 334 00:17:11,040 --> 00:17:12,440 Speaker 8: sort of difference between them. 335 00:17:12,359 --> 00:17:15,480 Speaker 2: Or just go after them intentionally, like Governor Chris Christy 336 00:17:15,560 --> 00:17:18,280 Speaker 2: has done in the past couple debates. Remember in the 337 00:17:18,280 --> 00:17:20,800 Speaker 2: second debate, he looked directly at the camera and said, Trump, 338 00:17:20,840 --> 00:17:24,080 Speaker 2: I know you're watching, So I'll be interested to see 339 00:17:24,080 --> 00:17:26,520 Speaker 2: if we get some kind of reiteration of that in 340 00:17:26,560 --> 00:17:28,600 Speaker 2: the third go around. But on the subject of the 341 00:17:28,600 --> 00:17:32,159 Speaker 2: former president, how heavily is he going to feature? He 342 00:17:32,280 --> 00:17:35,000 Speaker 2: still very much as the front runner, perhaps even cemented 343 00:17:35,040 --> 00:17:37,879 Speaker 2: even more so in the lead up to this, So 344 00:17:38,080 --> 00:17:39,880 Speaker 2: once again unavoidable topic. 345 00:17:39,680 --> 00:17:41,960 Speaker 8: I think, an unvotable topic. I felt like in the 346 00:17:42,040 --> 00:17:44,719 Speaker 8: last debate, you know, they covered so much ground. I 347 00:17:44,800 --> 00:17:47,840 Speaker 8: was just reading some coverage of it to remind myself yesterday. 348 00:17:48,119 --> 00:17:51,480 Speaker 8: You know, they talked about inflation and housing and China 349 00:17:52,119 --> 00:17:55,240 Speaker 8: and you know, the flow of LYSID drugs over the border. 350 00:17:55,600 --> 00:17:58,679 Speaker 8: They did talk about Trump, and some people went after Trump, 351 00:17:58,760 --> 00:18:01,560 Speaker 8: but you know, it wasn't like everybody wanted to take 352 00:18:01,600 --> 00:18:04,600 Speaker 8: down the former president, even though he's really the front 353 00:18:04,640 --> 00:18:07,919 Speaker 8: runner and loomed over the debate. His absence loomed over it. 354 00:18:08,320 --> 00:18:10,359 Speaker 8: What will be interesting Wednesday night is that he is 355 00:18:10,400 --> 00:18:13,679 Speaker 8: holding a counter program made event also in Florida, like 356 00:18:13,800 --> 00:18:15,399 Speaker 8: not that far away from the debate. 357 00:18:15,480 --> 00:18:19,160 Speaker 2: Yeah, the two Florida men in Florida, in their home 358 00:18:19,200 --> 00:18:22,080 Speaker 2: state essentially, So this will be an interesting dynamic. You 359 00:18:22,119 --> 00:18:24,520 Speaker 2: mentioned there, Nancy, how a lot of ground was covered 360 00:18:24,560 --> 00:18:28,400 Speaker 2: in the second debate topic wise, from inflation, to schools, 361 00:18:28,440 --> 00:18:31,439 Speaker 2: to other aspects of it. One thing that hadn't happened 362 00:18:31,520 --> 00:18:34,760 Speaker 2: yet though, was October seventh and the conflict erupting between 363 00:18:34,800 --> 00:18:37,199 Speaker 2: Israel and Hamas. So I would imagine they're going to 364 00:18:37,200 --> 00:18:40,040 Speaker 2: face some questions about that this time around. Do we 365 00:18:40,119 --> 00:18:43,200 Speaker 2: have a sense of where the different candidates are on 366 00:18:43,240 --> 00:18:43,960 Speaker 2: that issue. 367 00:18:44,119 --> 00:18:47,199 Speaker 8: Well, that's a great point. And the candidates really have 368 00:18:47,400 --> 00:18:51,280 Speaker 8: tried to appear all over this conflict, particularly DeSantis and 369 00:18:51,359 --> 00:18:54,959 Speaker 8: Nikki Haley. So DeSantis made this big show of you know, 370 00:18:55,080 --> 00:18:58,199 Speaker 8: trying like sending a plane from Florida to try to 371 00:18:58,240 --> 00:19:01,200 Speaker 8: get you know, Americans, or really is bring them back 372 00:19:01,200 --> 00:19:03,440 Speaker 8: to Florida and try to appear on top of it. 373 00:19:03,680 --> 00:19:06,320 Speaker 8: You know, Haley has really you know, she was the 374 00:19:06,480 --> 00:19:09,720 Speaker 8: UN ambassador and the Trump administration, she does have some 375 00:19:09,840 --> 00:19:13,399 Speaker 8: concrete foreign policy experience. She has really tried to appear 376 00:19:13,600 --> 00:19:15,600 Speaker 8: very out front of that. So I do feel like 377 00:19:15,680 --> 00:19:19,440 Speaker 8: foreign policy not just the Israeli Hamas war, but also 378 00:19:19,480 --> 00:19:21,600 Speaker 8: the Ukraine war. Do you whatny mean, what this means 379 00:19:21,600 --> 00:19:23,919 Speaker 8: for Iran? I feel like this will be potentially a 380 00:19:24,119 --> 00:19:25,840 Speaker 8: very foreign policy heavy debate. 381 00:19:26,080 --> 00:19:28,280 Speaker 2: One of the most memorable moments of the first debate 382 00:19:28,280 --> 00:19:30,720 Speaker 2: for me was Nikki Haley telling Vive Grumswami that he 383 00:19:30,760 --> 00:19:33,080 Speaker 2: had no foreign policy experience, and it showed. So I 384 00:19:33,119 --> 00:19:36,119 Speaker 2: wonder how he might address that this time around, because 385 00:19:36,160 --> 00:19:38,960 Speaker 2: he has been in the prior debates pretty vocal about 386 00:19:39,119 --> 00:19:41,760 Speaker 2: not wanting to provide further support for Ukraine, and a 387 00:19:41,760 --> 00:19:43,520 Speaker 2: lot of people see these issues as tied together. 388 00:19:43,840 --> 00:19:46,479 Speaker 8: They do, and I mean that's sort of a divide 389 00:19:46,520 --> 00:19:49,320 Speaker 8: in the Republican Party at this point about who wants 390 00:19:49,359 --> 00:19:52,320 Speaker 8: to support Israel financially. I would say that there's more 391 00:19:52,359 --> 00:19:55,280 Speaker 8: broad support for that, and who wants to keep giving 392 00:19:55,359 --> 00:19:58,000 Speaker 8: aid to Ukraine. And there's a ton of Republicans who 393 00:19:58,000 --> 00:20:02,120 Speaker 8: feel like the A to Ukraine shoul should stop. Ramaswami 394 00:20:02,240 --> 00:20:04,160 Speaker 8: is one of them. DeSantis has sort of gone back 395 00:20:04,160 --> 00:20:06,600 Speaker 8: and forth on that and then there's a bunch of 396 00:20:06,600 --> 00:20:10,200 Speaker 8: House Republicans, including the new Speaker, who are much more 397 00:20:10,240 --> 00:20:13,040 Speaker 8: skeptical of ongoing a to Ukraine. 398 00:20:13,160 --> 00:20:15,320 Speaker 2: Yep, it's a hot topic on Capitol Hill, and I 399 00:20:15,320 --> 00:20:17,840 Speaker 2: would imagine it'll be a hot topic on the stage 400 00:20:17,880 --> 00:20:20,440 Speaker 2: this coming week as well. Safe travels to Florida. Nancy, 401 00:20:20,480 --> 00:20:23,400 Speaker 2: Thank you so much. That's Nancy Cook, who helps cover 402 00:20:23,840 --> 00:20:27,400 Speaker 2: national politics for us here at Bloomberg and Tom, make 403 00:20:27,440 --> 00:20:29,080 Speaker 2: sure to turn the TV on on Wednesday night. 404 00:20:29,240 --> 00:20:32,040 Speaker 1: Thank you, Kaylee. That was Bloomberg sound On co host 405 00:20:32,119 --> 00:20:35,280 Speaker 1: Kaylee Lines, reporting from our Bloomberg ninety nine one newsroom 406 00:20:35,320 --> 00:20:37,880 Speaker 1: in Washington, and you can hear sound on weekdays one 407 00:20:37,920 --> 00:20:40,600 Speaker 1: to three pm on Bloomberg Radio and coming up on 408 00:20:40,640 --> 00:20:43,280 Speaker 1: Bloomberg day Break weekend. We get you ready for earnings 409 00:20:43,520 --> 00:20:58,200 Speaker 1: from UBS. I'm Tom Busby and this is Bloomberg. I'm 410 00:20:58,240 --> 00:21:00,439 Speaker 1: Tom Busby in New York with your global ahead at 411 00:21:00,440 --> 00:21:03,040 Speaker 1: the top stories for investors in the coming week. We 412 00:21:03,119 --> 00:21:05,840 Speaker 1: heard from all the big US banks and now Switzerland's 413 00:21:05,920 --> 00:21:10,200 Speaker 1: UBS reports earnings this week. UBS the second quarter includes 414 00:21:10,240 --> 00:21:13,200 Speaker 1: one month of credit SWIEE numbers and for more, let's 415 00:21:13,200 --> 00:21:15,639 Speaker 1: head to London and bring in Bloomberg Daybreak, europe banker 416 00:21:15,960 --> 00:21:17,320 Speaker 1: Caroline Hepger. 417 00:21:17,280 --> 00:21:21,960 Speaker 3: Tom Bloomberg Intelligence expects US banks to outperform European peers. 418 00:21:22,280 --> 00:21:25,960 Speaker 3: There is particular focus though on UBS, given the integration 419 00:21:26,400 --> 00:21:30,080 Speaker 3: of credit swite. UBS is skewed to equities trading, which 420 00:21:30,119 --> 00:21:34,960 Speaker 3: has exceeded expectations. In the aggregate. Overall shares in European 421 00:21:35,000 --> 00:21:37,600 Speaker 3: financials are up about eight percent year to date, with 422 00:21:37,640 --> 00:21:40,720 Speaker 3: the ECB sticking to its higher for longer view. So 423 00:21:40,760 --> 00:21:43,159 Speaker 3: Bloomberg's Critty g Gooptur and I have been speaking to 424 00:21:43,320 --> 00:21:46,600 Speaker 3: our Swiss banking and wealth reporter Marin health Dema to 425 00:21:46,640 --> 00:21:49,680 Speaker 3: get a preview of what to expect from UBS and 426 00:21:49,840 --> 00:21:53,560 Speaker 3: on the overall banking picture. Our Bloomberg opinion columnist Paul J. 427 00:21:53,840 --> 00:21:57,520 Speaker 3: Davies I began by asking Paul about why banks seem 428 00:21:57,560 --> 00:22:00,680 Speaker 3: to be benefiting from higher interest rates and yet still 429 00:22:00,680 --> 00:22:04,119 Speaker 3: not actually feeling a hit from higher default rates and 430 00:22:04,240 --> 00:22:08,560 Speaker 3: other issues that might affect them. We asked him why not, Well, I. 431 00:22:08,480 --> 00:22:11,679 Speaker 9: Think the I mean, the interesting thing is that the 432 00:22:11,720 --> 00:22:15,560 Speaker 9: economy is still, you know, much stronger than perhaps many 433 00:22:15,560 --> 00:22:17,880 Speaker 9: people you know expected it to be. All well, much 434 00:22:17,880 --> 00:22:19,560 Speaker 9: stronger is maybe a bit of an exaggeration. It's not 435 00:22:20,080 --> 00:22:23,120 Speaker 9: you know, turning down or slowing down quite as rapidly 436 00:22:23,160 --> 00:22:25,120 Speaker 9: as we might have expected. I mean, in the US, 437 00:22:26,280 --> 00:22:29,280 Speaker 9: you know, the economy is going great and banks are 438 00:22:29,359 --> 00:22:32,879 Speaker 9: doing really really well. Over there, in Europe it's a 439 00:22:32,880 --> 00:22:35,760 Speaker 9: bit different. It's a lot slower. You know, Germany has 440 00:22:35,840 --> 00:22:38,320 Speaker 9: started to shrink and is dragging down you know, some 441 00:22:38,359 --> 00:22:41,840 Speaker 9: of the other economies. But so long as employment isn't rising, 442 00:22:41,960 --> 00:22:44,200 Speaker 9: so long as people aren't losing their jobs, so long 443 00:22:44,240 --> 00:22:48,000 Speaker 9: as you know, companies aren't yet you know, going bust 444 00:22:48,560 --> 00:22:52,280 Speaker 9: or really struggling, then you know that then that's why 445 00:22:52,320 --> 00:22:54,800 Speaker 9: sort of banks aren't feeling the pain yet. But I mean, 446 00:22:54,840 --> 00:22:56,840 Speaker 9: I think in Europe it's sort of it's starting to 447 00:22:56,840 --> 00:22:58,560 Speaker 9: feel a lot more likely that we're going to see 448 00:22:58,560 --> 00:23:00,600 Speaker 9: a bit more of that going into next year. 449 00:23:01,480 --> 00:23:03,919 Speaker 10: And when we do, when we do inevitably hit that 450 00:23:03,960 --> 00:23:06,520 Speaker 10: potential peak RaSE, whether it's next year or the year after, 451 00:23:06,640 --> 00:23:12,159 Speaker 10: whenever that is eventually hit, the burden on some of 452 00:23:12,200 --> 00:23:15,480 Speaker 10: these banks to kind of find alternative revenue that isn't 453 00:23:15,480 --> 00:23:18,240 Speaker 10: coming from interest income seems all the more important. What 454 00:23:18,320 --> 00:23:19,399 Speaker 10: might that actually look like? 455 00:23:21,080 --> 00:23:24,200 Speaker 9: Well, I mean, you know, interest income has been it 456 00:23:24,240 --> 00:23:26,480 Speaker 9: has been the thing that banks have, especially in Europe, 457 00:23:26,480 --> 00:23:29,240 Speaker 9: have been forced to live without for like, you know, 458 00:23:29,280 --> 00:23:31,880 Speaker 9: well over a decade already. I mean the last year 459 00:23:32,080 --> 00:23:36,639 Speaker 9: or so, we've seen net interesting income rise very very rapidly, 460 00:23:36,680 --> 00:23:40,440 Speaker 9: obviously with rising interest rates. I mean in the UK especially, 461 00:23:41,320 --> 00:23:44,240 Speaker 9: it's already peaked. I think you know one of the 462 00:23:44,280 --> 00:23:47,119 Speaker 9: banks last week that reported that had a bit of 463 00:23:47,119 --> 00:23:49,840 Speaker 9: a rough time, as Barclays, and that's because they kind 464 00:23:49,840 --> 00:23:54,240 Speaker 9: of somewhat surprisingly adjusted their expected net interest margins for 465 00:23:54,280 --> 00:23:59,040 Speaker 9: the full year down already, So you know, interest income 466 00:23:59,119 --> 00:24:02,840 Speaker 9: maybe as interest margins at least may well have peaked already. 467 00:24:03,200 --> 00:24:07,080 Speaker 9: Loan demand isn't isn't particularly strong, and in some areas 468 00:24:07,080 --> 00:24:08,959 Speaker 9: it's going to start to come down. So I mean, 469 00:24:09,000 --> 00:24:11,239 Speaker 9: what they're going to replace it with is you know 470 00:24:11,280 --> 00:24:13,199 Speaker 9: what they've been trying to replace it with for a 471 00:24:13,200 --> 00:24:16,640 Speaker 9: decade already. And in some banks that's about what more 472 00:24:16,720 --> 00:24:20,560 Speaker 9: wealth management. Others it's going to be about you desperately 473 00:24:20,600 --> 00:24:23,879 Speaker 9: hoping for a pickup in investment banking, and you know, 474 00:24:23,920 --> 00:24:27,359 Speaker 9: a continuation of some slightly better trends in kind of 475 00:24:27,359 --> 00:24:28,800 Speaker 9: trading and markets as well. 476 00:24:30,280 --> 00:24:32,840 Speaker 3: Marian half Tamar, let me bring you in our Swiss 477 00:24:32,880 --> 00:24:35,520 Speaker 3: Banking and Wealth Reporter to look, I suppose that the 478 00:24:35,520 --> 00:24:39,639 Speaker 3: specifics around UBS and it's earnings, I mean, do you 479 00:24:39,720 --> 00:24:41,920 Speaker 3: think that the bank is going to see the benefits 480 00:24:41,920 --> 00:24:43,920 Speaker 3: from the integration of Credit Suite. I mean, this is 481 00:24:43,960 --> 00:24:47,240 Speaker 3: a specific example. Some people even see UBS as a 482 00:24:47,280 --> 00:24:50,040 Speaker 3: potential kind of European banking champion. Do you think we 483 00:24:50,080 --> 00:24:51,399 Speaker 3: can go as far as to say that. 484 00:24:53,320 --> 00:24:55,160 Speaker 11: I think time will tell on that Brant. They still 485 00:24:55,200 --> 00:24:57,320 Speaker 11: have a lot to go through with the integration, but 486 00:24:57,960 --> 00:25:00,439 Speaker 11: we're are going to be seeing their earnings next this week, 487 00:25:00,880 --> 00:25:03,479 Speaker 11: hopefully we'll have a bit more clarity on just how 488 00:25:03,560 --> 00:25:07,040 Speaker 11: much Credit Suite is still losing in terms of profitability. 489 00:25:07,640 --> 00:25:09,040 Speaker 11: They had kind of guided that they were going to 490 00:25:09,080 --> 00:25:12,600 Speaker 11: be losing two billion dollars worth of profit already this quarter, 491 00:25:12,760 --> 00:25:15,600 Speaker 11: So we'll see how UBS absorbs. That key will be 492 00:25:15,800 --> 00:25:18,240 Speaker 11: to see that come down over the next couple of 493 00:25:18,320 --> 00:25:22,160 Speaker 11: quarters and not eat into UBS's business because in two 494 00:25:22,280 --> 00:25:25,560 Speaker 11: Q for example, Credit Sweeze is loss completely wiped out 495 00:25:25,640 --> 00:25:29,000 Speaker 11: UBS profit. So we need to see that calibration happen, 496 00:25:30,400 --> 00:25:32,840 Speaker 11: and then you know, eventually, once they've able to they've 497 00:25:32,840 --> 00:25:34,960 Speaker 11: been able to sort of fully integrate and capitalize on 498 00:25:35,000 --> 00:25:38,280 Speaker 11: Credit Squee's business. You know, that's the goal is can 499 00:25:38,320 --> 00:25:41,040 Speaker 11: they be, you know, a champion in the way that 500 00:25:41,080 --> 00:25:44,800 Speaker 11: a Goldman Sachs is or JP Morgan is for investment banking, 501 00:25:44,880 --> 00:25:46,440 Speaker 11: but instead for wealth management. 502 00:25:47,440 --> 00:25:50,120 Speaker 10: Where does the next leg of growth actually come from? Though, 503 00:25:50,160 --> 00:25:53,640 Speaker 10: I mean, Caroline just mentioned being kind of a European champion, 504 00:25:53,680 --> 00:25:55,919 Speaker 10: but in terms of the international push, You've done some 505 00:25:55,960 --> 00:25:57,040 Speaker 10: reporting on the Middle East. 506 00:25:58,480 --> 00:26:01,560 Speaker 11: Yeah, so UBS doesn't see it self as a European champion. 507 00:26:01,600 --> 00:26:04,679 Speaker 11: It does see itself as a global champion. One of 508 00:26:04,720 --> 00:26:08,119 Speaker 11: the big areas you mentioned the Middle East. They gained 509 00:26:08,160 --> 00:26:10,720 Speaker 11: a lot of foothold there with the Credit Suite acquisition 510 00:26:10,760 --> 00:26:13,480 Speaker 11: because Credit speech is probably one of the biggest banks there, 511 00:26:13,520 --> 00:26:16,120 Speaker 11: particularly for wealth management and how that ties into doing 512 00:26:16,160 --> 00:26:19,160 Speaker 11: big deals with the sovereigns and royals and large business 513 00:26:19,240 --> 00:26:22,960 Speaker 11: entrepreneurs there. So that's definitely putting them ahead of the game. 514 00:26:23,200 --> 00:26:25,360 Speaker 11: But there are other large players as well, so they'll 515 00:26:25,400 --> 00:26:27,280 Speaker 11: have to keep an eye on that. And then there's 516 00:26:27,320 --> 00:26:30,439 Speaker 11: a geopolitical angle with that region right now, where you 517 00:26:30,440 --> 00:26:32,800 Speaker 11: know they've recently had to cancel a big wealth conference 518 00:26:32,840 --> 00:26:37,520 Speaker 11: in Qatar because of the conflict so whether the short 519 00:26:37,600 --> 00:26:40,440 Speaker 11: term conflict will affect the long term plans is sup 520 00:26:40,440 --> 00:26:42,439 Speaker 11: remains to be seen. But that's certainly putting a bit 521 00:26:42,480 --> 00:26:44,760 Speaker 11: of a delay in potentially their ability to put the 522 00:26:44,760 --> 00:26:48,119 Speaker 11: pieces together with this acquisition. And then of course, you 523 00:26:48,119 --> 00:26:50,480 Speaker 11: know you're looking at the US as a big wealth 524 00:26:50,480 --> 00:26:52,560 Speaker 11: pool and Asia as well. It's a bit more on 525 00:26:52,600 --> 00:26:56,240 Speaker 11: the back burner because of the geopolitical tensions, Paul. 526 00:26:56,320 --> 00:27:00,040 Speaker 3: That's interesting, isn't it about the regional push of the 527 00:27:00,160 --> 00:27:04,000 Speaker 3: different banks. Do you see more job cuts coming for 528 00:27:04,320 --> 00:27:08,679 Speaker 3: big European banks certainly as some of them try to 529 00:27:08,760 --> 00:27:11,359 Speaker 3: refocus on different parts of the globe, perhaps, you know, 530 00:27:11,359 --> 00:27:14,000 Speaker 3: push away from China into the Middle East or in 531 00:27:14,080 --> 00:27:16,439 Speaker 3: other places. You know how it does feel like a 532 00:27:16,480 --> 00:27:19,000 Speaker 3: moment where banks are repositioning somewhat globally. 533 00:27:20,920 --> 00:27:23,680 Speaker 9: Yeah, so, I mean in terms of job cuts, I mean, 534 00:27:23,920 --> 00:27:26,719 Speaker 9: I guess we've had a few already, probably more from 535 00:27:26,760 --> 00:27:30,560 Speaker 9: the US banks in Europe and elsewhere. I mean, I think, 536 00:27:31,040 --> 00:27:33,440 Speaker 9: you know, one of the things in investment banking and 537 00:27:33,480 --> 00:27:37,320 Speaker 9: trading and such like among the Europeans is that they 538 00:27:37,359 --> 00:27:42,879 Speaker 9: didn't really hire quite so rapidly and quite so extensively 539 00:27:43,400 --> 00:27:45,360 Speaker 9: during sort of you know, twenty twenty one and into 540 00:27:45,400 --> 00:27:47,159 Speaker 9: twenty two when we had that real sort of boom 541 00:27:47,200 --> 00:27:50,920 Speaker 9: in market. So they've kind of, you know, they've got 542 00:27:51,000 --> 00:27:54,120 Speaker 9: less people, fewer sort of you know, excess resources. 543 00:27:54,119 --> 00:27:54,320 Speaker 11: Now. 544 00:27:54,359 --> 00:27:56,640 Speaker 9: I mean, I think you know, Barkley's is certainly talking 545 00:27:56,680 --> 00:28:00,000 Speaker 9: about finding lots of efficiencies and making a few cut 546 00:28:00,240 --> 00:28:02,119 Speaker 9: We don't really know exactly where they're going to do 547 00:28:02,119 --> 00:28:03,840 Speaker 9: that yet. They've been quite sort of coy about what 548 00:28:04,840 --> 00:28:07,200 Speaker 9: their plans are. But I mean, for the most part, 549 00:28:07,280 --> 00:28:09,240 Speaker 9: and again especially in investment banking, one of the things 550 00:28:09,240 --> 00:28:12,320 Speaker 9: that we've been seeing recently is it's actually quite a 551 00:28:12,320 --> 00:28:14,560 Speaker 9: lot of hiring going on among kind of you know 552 00:28:14,640 --> 00:28:19,360 Speaker 9: deal makers, really good deal makers as you know, smaller 553 00:28:19,400 --> 00:28:23,119 Speaker 9: banks and you know, unexpected banks, banks like Santander for example, 554 00:28:23,520 --> 00:28:26,000 Speaker 9: you know, really stuck up on sort of talent that's 555 00:28:26,040 --> 00:28:28,120 Speaker 9: available that they can get their hands on now during 556 00:28:28,119 --> 00:28:31,000 Speaker 9: this sort of relatively quiet period in the hope that 557 00:28:31,000 --> 00:28:33,840 Speaker 9: that means that they'll get a head start and see 558 00:28:33,840 --> 00:28:35,320 Speaker 9: a lot more be able to generate a lot more 559 00:28:35,359 --> 00:28:38,560 Speaker 9: revenue when markets and deal making and so on picks 560 00:28:38,640 --> 00:28:41,400 Speaker 9: up once you know, interest rates have settled down or 561 00:28:41,440 --> 00:28:43,560 Speaker 9: whatever is the driver that brings back that confidence to 562 00:28:43,560 --> 00:28:44,600 Speaker 9: get markets going again. 563 00:28:45,440 --> 00:28:47,480 Speaker 10: I love that you mentioned Santander because of course we 564 00:28:47,520 --> 00:28:49,880 Speaker 10: know they're trying to expand their their Wall Street presence 565 00:28:49,920 --> 00:28:52,720 Speaker 10: as well over over in the state. Paul, very quickly, 566 00:28:52,720 --> 00:28:55,160 Speaker 10: if you can talk to us about what other banks 567 00:28:55,200 --> 00:28:57,000 Speaker 10: are in the rat race to kind of take up 568 00:28:57,120 --> 00:28:59,240 Speaker 10: some of the market share that perhaps Credit Suite has 569 00:28:59,320 --> 00:28:59,800 Speaker 10: left behind. 570 00:29:01,800 --> 00:29:03,840 Speaker 9: I guess it kind of depends on the sorts of 571 00:29:03,880 --> 00:29:06,200 Speaker 9: areas that you're talking about. I mean, you know, the 572 00:29:06,560 --> 00:29:09,560 Speaker 9: kind of the boutiques have been doing a lot of hiring, 573 00:29:10,800 --> 00:29:13,520 Speaker 9: mainly in the US, but in Europe too. That's the 574 00:29:13,600 --> 00:29:18,120 Speaker 9: kind of you know, the ever cause pg T's you know, 575 00:29:18,400 --> 00:29:22,320 Speaker 9: these they are quite large boutiques nowadays. Jeffries too like 576 00:29:22,400 --> 00:29:25,200 Speaker 9: kind of you know, the real sort of tear expanding 577 00:29:25,240 --> 00:29:27,600 Speaker 9: in the last couple of years. So and I think, 578 00:29:27,840 --> 00:29:30,000 Speaker 9: you know, that's where some of the market share has 579 00:29:30,040 --> 00:29:32,640 Speaker 9: been going in sort of you know, classic investment banking 580 00:29:33,160 --> 00:29:36,000 Speaker 9: and in terms of trading. I mean, you know, it's 581 00:29:36,040 --> 00:29:42,640 Speaker 9: still a long ongoing story of just you know, everything 582 00:29:42,680 --> 00:29:46,760 Speaker 9: gravitating to the biggest, you know, most efficient shops. So 583 00:29:46,800 --> 00:29:50,160 Speaker 9: it's just it's still just the JP Morgan's Goldman Saxes, 584 00:29:50,680 --> 00:29:53,720 Speaker 9: you know, sort of taking slowly more and more share 585 00:29:53,800 --> 00:29:56,840 Speaker 9: from pretty much everybody everywhere else anywhere in the world. 586 00:29:57,400 --> 00:29:59,600 Speaker 3: That was Pritty Group Tour and I speaking to Blueberg 587 00:29:59,600 --> 00:30:03,160 Speaker 3: Swiss King and Wealth reportermar and Healthtamara and our Bloomberg 588 00:30:03,160 --> 00:30:06,520 Speaker 3: opinion columnist Paul J. Davies. I'm Caroline Hepge here in London. 589 00:30:06,600 --> 00:30:09,840 Speaker 3: You can catch us every weekday morning for Bloomberg Daybreak Europe, 590 00:30:09,880 --> 00:30:12,840 Speaker 3: beginning at six am in London. That's one am on 591 00:30:13,000 --> 00:30:13,600 Speaker 3: Wall Street. 592 00:30:14,080 --> 00:30:16,880 Speaker 1: Tom Our thanks to Bloomberg day Break Europe. Banker Caroline 593 00:30:16,880 --> 00:30:19,440 Speaker 1: Hepgar and coming up here on Bloomberg day Break weekend, 594 00:30:19,880 --> 00:30:23,040 Speaker 1: the Prime Minister of Australia heads to China and we 595 00:30:23,120 --> 00:30:26,920 Speaker 1: head to Asia next. I'm Tom Busby and this is Bloomberg. 596 00:30:37,440 --> 00:30:39,760 Speaker 1: This is Bloomberg day Break Weekend, our global look ahead 597 00:30:39,760 --> 00:30:41,960 Speaker 1: at the top stories for investors in the coming week, 598 00:30:42,480 --> 00:30:46,280 Speaker 1: Diplomacy and trade in focus. As a top government official 599 00:30:46,320 --> 00:30:48,720 Speaker 1: heads to Asia for more, Let's go to Hong Kong 600 00:30:48,760 --> 00:30:52,080 Speaker 1: and Bloomberg Daybreak Asia host Brian Curtis. 601 00:30:51,960 --> 00:30:55,160 Speaker 4: Tom Australian Prime Minister Anthony Albanize. He will be in 602 00:30:55,240 --> 00:30:59,760 Speaker 4: China during the coming week, looking to further stabilize bilateral relations. 603 00:31:00,120 --> 00:31:03,080 Speaker 4: Albanesi's visit will be the first by an Australian leader 604 00:31:03,200 --> 00:31:07,280 Speaker 4: since twenty sixteen. While there have been some advances of late, 605 00:31:07,680 --> 00:31:11,840 Speaker 4: China still has restrictions on Australian lobsters and beef, and 606 00:31:11,880 --> 00:31:15,760 Speaker 4: there's a review on wine duties that is ongoing. One 607 00:31:15,800 --> 00:31:19,560 Speaker 4: other recent positive was China released Australian journalist Chang Lei 608 00:31:19,920 --> 00:31:23,000 Speaker 4: last month. She had been detained in China for almost 609 00:31:23,000 --> 00:31:27,200 Speaker 4: three years under espionage related charges. Joining us for some 610 00:31:27,280 --> 00:31:30,760 Speaker 4: insights here on how to gauge success or failure for 611 00:31:30,880 --> 00:31:36,880 Speaker 4: the Albanesi trip is Ben Westcott, Bloomberg Government reporter in Canberra. So, first, Ben, 612 00:31:37,040 --> 00:31:39,720 Speaker 4: before we get into some of the teeth about overall 613 00:31:39,720 --> 00:31:44,880 Speaker 4: relations in indications of progress in areas like beef and 614 00:31:44,920 --> 00:31:47,880 Speaker 4: lobsters that may have been done behind the scenes that 615 00:31:48,000 --> 00:31:49,360 Speaker 4: hasn't been made public. 616 00:31:49,480 --> 00:31:53,120 Speaker 12: In recent wait. So I'd say is that Australia has 617 00:31:53,160 --> 00:31:56,120 Speaker 12: been highlighting the lobs to issue more which suggests that 618 00:31:56,120 --> 00:31:59,960 Speaker 12: that might be an easy win for both China and Australia. 619 00:32:00,280 --> 00:32:03,400 Speaker 12: A quick announcement, as they say, out of this trip, 620 00:32:03,640 --> 00:32:06,560 Speaker 12: and obviously much less complicated than the wine sanctions which 621 00:32:06,560 --> 00:32:09,480 Speaker 12: are currently under review, more than the release of the 622 00:32:09,520 --> 00:32:13,920 Speaker 12: remaining Australian in China right at Young Hang June, who's 623 00:32:13,960 --> 00:32:17,040 Speaker 12: been in prison there for more than four years. So 624 00:32:17,360 --> 00:32:20,040 Speaker 12: you know, in comparison to that, a win on lobsters 625 00:32:20,120 --> 00:32:22,520 Speaker 12: or a win on beef would be a much more 626 00:32:22,800 --> 00:32:24,760 Speaker 12: more easy thing away with them to sell. 627 00:32:25,000 --> 00:32:28,080 Speaker 4: And you mentioned that they're setting aside for the moment 628 00:32:28,160 --> 00:32:32,560 Speaker 4: the WTO wine dispute and China has this review underway, 629 00:32:32,600 --> 00:32:35,360 Speaker 4: does the Prime Minister does the government generally expect a 630 00:32:35,400 --> 00:32:36,400 Speaker 4: positive outcome on that? 631 00:32:36,960 --> 00:32:39,720 Speaker 12: I mean generally I think there is there is hope 632 00:32:39,800 --> 00:32:43,640 Speaker 12: that that will come out well. But what people have 633 00:32:43,720 --> 00:32:45,880 Speaker 12: been saying is that this isn't as simple as the 634 00:32:45,920 --> 00:32:48,800 Speaker 12: barley tariffs. So the protest we saw for the barley 635 00:32:48,880 --> 00:32:52,080 Speaker 12: tariffs earlier this year was that once the WTO report 636 00:32:52,120 --> 00:32:56,120 Speaker 12: had been handed down, we then saw Chinese and Australians 637 00:32:56,480 --> 00:33:01,800 Speaker 12: review the report, which was then led to a review 638 00:33:01,960 --> 00:33:05,040 Speaker 12: of those tariffs by the Chinese side. They're eventual lifting 639 00:33:05,040 --> 00:33:07,160 Speaker 12: and that took three months with a one month extension. 640 00:33:07,480 --> 00:33:11,040 Speaker 12: Now already even straight off the bat, these wine tariffs 641 00:33:11,040 --> 00:33:13,520 Speaker 12: have been given a five month review, and I've been told, 642 00:33:13,600 --> 00:33:16,400 Speaker 12: you know, off the record, that it's much more complicated 643 00:33:18,000 --> 00:33:21,160 Speaker 12: than the Bali tariffs were. So there's good hope. Treasury 644 00:33:21,240 --> 00:33:25,800 Speaker 12: wine stocks have gone up, but no one's counting any 645 00:33:26,000 --> 00:33:27,040 Speaker 12: chickens at this point. 646 00:33:27,160 --> 00:33:30,040 Speaker 4: Will Prime Minister Albanzi have both the carrot and stick 647 00:33:30,360 --> 00:33:32,400 Speaker 4: in his arsenal on this trip? 648 00:33:32,520 --> 00:33:35,640 Speaker 12: Prim minist abaniniti faces a really tough challenge in this trip. 649 00:33:35,680 --> 00:33:38,120 Speaker 12: He has to step the line between not insulting his 650 00:33:38,240 --> 00:33:43,000 Speaker 12: hosts but not giving any reason for any people watching 651 00:33:43,080 --> 00:33:46,240 Speaker 12: in the US or any sort of conservatives back home 652 00:33:46,280 --> 00:33:51,000 Speaker 12: who are watching, to gain any sort of fears about 653 00:33:51,000 --> 00:33:55,360 Speaker 12: the relationship with China. What he says repeatedly is that 654 00:33:55,560 --> 00:33:58,960 Speaker 12: Australia and China will cooperate where they can, disagree where 655 00:33:58,960 --> 00:34:00,840 Speaker 12: they must. And I think that it's going to be 656 00:34:00,880 --> 00:34:02,360 Speaker 12: the trip, This is going to be the angle he 657 00:34:02,440 --> 00:34:04,960 Speaker 12: follows for his whole trip. I had someone say to me, 658 00:34:04,960 --> 00:34:06,280 Speaker 12: you know, when you're walking down the Great Hall of 659 00:34:06,320 --> 00:34:08,239 Speaker 12: the People towards changing Ping, it can be easy to 660 00:34:08,239 --> 00:34:10,799 Speaker 12: get or so it's going to be very interesting to 661 00:34:10,800 --> 00:34:14,000 Speaker 12: see how he handles this very delicate balancing act exactly. 662 00:34:14,120 --> 00:34:16,560 Speaker 4: Not the easiest time to bring up human rights or 663 00:34:16,719 --> 00:34:18,000 Speaker 4: conditions in Shinjong. 664 00:34:18,280 --> 00:34:20,880 Speaker 12: I mean exactly, and I mean the one thing that 665 00:34:20,920 --> 00:34:24,719 Speaker 12: has characterized Australian diplomacy is since May twenty twenty two, 666 00:34:24,880 --> 00:34:28,120 Speaker 12: when the Central Left Labor government took power, was that 667 00:34:28,160 --> 00:34:31,879 Speaker 12: they've done all that behind closed doors. With a few exceptions, 668 00:34:33,200 --> 00:34:38,040 Speaker 12: they've generally kept criticism of China's human rights abuses behind 669 00:34:38,080 --> 00:34:42,080 Speaker 12: closed doors, hidden meetings with Premier League At Chuang and 670 00:34:42,160 --> 00:34:44,719 Speaker 12: President of Chijing Ping And as a result, I mean, 671 00:34:44,800 --> 00:34:46,480 Speaker 12: or possibly as a results, possibly a result the other 672 00:34:46,520 --> 00:34:49,280 Speaker 12: things they have actually had those meetings which had eluded 673 00:34:49,360 --> 00:34:53,200 Speaker 12: previous governments who've been more vocal. So there has been 674 00:34:53,200 --> 00:34:55,960 Speaker 12: one major difference in Australia's diplomacy in recent years. 675 00:34:56,000 --> 00:34:59,200 Speaker 4: Ben, Thank you so much, Ben Westcott, Bloomberg Government reporter 676 00:34:59,440 --> 00:35:02,840 Speaker 4: in Ken. I'm Brian Curtis along with Doug Krisner. You 677 00:35:02,880 --> 00:35:05,680 Speaker 4: can catch us every weekday here for Bloomberg day Break 678 00:35:05,719 --> 00:35:09,000 Speaker 4: Asia beginning at six am in Hong Kong and six 679 00:35:09,080 --> 00:35:11,359 Speaker 4: pm on Wall Street tom. 680 00:35:11,120 --> 00:35:14,040 Speaker 1: Our thanks to Bloomberg day Break Asia host Brian Curtis. 681 00:35:14,280 --> 00:35:16,359 Speaker 1: And that does it for this edition of Bloomberg day 682 00:35:16,360 --> 00:35:19,520 Speaker 1: Break Weekend. Join us again Monday morning, five am Wall 683 00:35:19,560 --> 00:35:21,960 Speaker 1: Street Time for the latest on markets overseas and the 684 00:35:22,000 --> 00:35:25,080 Speaker 1: news you need to start your day. I'm Tom Busby. 685 00:35:25,239 --> 00:35:28,080 Speaker 1: Stay with US. Top stories and global business headlines are 686 00:35:28,120 --> 00:35:29,520 Speaker 1: coming up right now